The Kotak Premier Life Plan is a limited premium paying non-participating whole life plan that provides coverage up to the age of 99 years. Policyholders will additionally receive bonus payments after the end of the premium paying term and the provision to enhance their coverage through riders.
Eligibility Criteria for Kotak Premier Life Plan:
|Minimum Entry Age||3 years|
|Maximum Entry Age||For 8 year PPT- 55 years For 12 year PPT- 53 years For 15 year PPT- 50 years For 20 year PPT- 45 years|
|Maximum Maturity Age||99 years|
Policy Terms for Kotak Premier Life Plan:
|Limited Pay||8,12,15 & 20 years|
Premium Payments Offered under Kotak Premier Life Plan:
|Minimum Premium||Based on Sum Assured at maturity, entry age, gender and premium payment term (PPT)|
|Maximum Premium||Unlimited, subject to underwriting|
|Minimum Sum Assured (on maturity)||Rs.2,00,000|
|Premium Payment Mode||Monthly, quarterly, half-yearly, yearly|
|Modal Factor (used to calculate % of annual premium)||Yearly- 100% Half-yearly- 51% Quarterly- 26% Monthly- 8.8%|
Key Features of Kotak Premier Life Plan:
|Loan facility||Can be availed after policy reaches Surrender Value. Avail up to 80% of Surrender Value as loan amount (minimum of Rs.10,000 and maximum of 95% of Surrender Value).|
|Grace period||30 days from the date the premium payment is due for quarterly, half-yearly and yearly payment modes. 15 days in case of monthly payment mode.|
|Free look period||15 days free look period (30 days for distance marketing channel policies) from the date the policy was received within which the policyholder can choose to return the policy without any charge. In case of policy return, premium amount paid will be refunded.|
|Terminal bonus||Percentage of Sum Assured and paid-up additions which is payable in the event of the policyholder’s death after 10 full policy years/on maturity.|
|Policy revival||Lapsed policy can be reinstated within two years of first unpaid premium date by paying late payment charge of 9% per annum and all dues/missed premiums.|
|Policy surrender||PPT of less than 10 years- Guaranteed Surrender Value (GSV) acquired after 2 full premium payments. PPT of more than 10 years- GSV acquired after 3 full premium payments.|
Benefits of Kotak Premier Life Plan:
Death Benefit- if the Life Assured passes away during the Life Insurance Policy term but after the premium payment term, the nominee stands to receive the Sum Assured, which is the higher of 11 times of the annualised premium or 105% of the premiums paid till death or the Sum Assured on maturity. Any accrued paid-up additions and terminal bonuses, if applicable, would also be provided.
Survival Benefit- if the Life Assured survives the policy term, he/she stands to receive benefits in the form of either a cash payout (where bonuses are paid in cash) or paid-up additions (where the bonus amount would be used to buy paid-up additions and accumulate a corpus).
Simple Reversionary Bonus- this bonus is a percentage of the Sum Assured on maturity and could be declared at the end of a financial year. These bonuses are not guaranteed but any bonus declared will vest from the first policy year to the end of the premium payment term and can be paid out as cash pay-outs or be accumulated to buy Paid-Up Additions (guaranteed benefits payable on death or maturity).
Cash Bonus- the cash bonus is a company declared additional bonus that could be declared at the end of a financial year and is payable till the end of the policy term/death/surrender of the policy. This will be applied on Accrued Paid-Up Additions as well.
Interim Bonus- if a claim is filed mid-way through a financial year or before the declaration of the Simple Reversionary Bonus and Cash bonus for the financial year in which the claim is filed, an interim bonus could be payable based on the company’s discretion.
Premium Discount- policyholders who have a high Sum Assured will be eligible for discounts on their premium amounts. Additionally, all female policyholders will receive an additional Rs.1,000 discount on premium amount payable.
Tax Benefits- policyholders can avail tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961 subject to the specified conditions under the particular sections.
How Kotak Premier Life Plan Works?
As a policyholder, you will be able to choose the Sum Assured on maturity as well as the premium payment term from the options provided (i.e., monthly, quarterly, half-yearly or yearly). The premium amount selected is to be paid for the term selected.
You will also be required to choose a Bonus option- either cash payout or paid-up additions.
If you have selected the cash payout bonus option, the Simple Reversionary Bonus will be accrued during the premium payment term and will be paid out as a lump sum at the end of the premium payment term. Any cash bonus will be paid out at the time of policy maturity/death/surrender of the policy, whichever is applicable.
If you have selected the paid-up addition bonus option, Paid-Up Additions (PUA) will be bought with the bonus amount.
At the time of policy maturity, the Maturity Benefit (Sum Assured on maturity basis + accrued paid-up additions, if any + cash bonus, if any + terminal bonus, if any) will be paid out.
The Kotak Premier Life Plan has the following riders which can be added to a policy:
- Kotak Term Benefit Rider.
- Kotak Accidental Death Benefit Rider.
- Kotak Permanent Disability Rider.
- Kotak Life Guardian Benefit Rider.
- Kotak Accidental Disability Guardian Benefit Rider.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017